Bond Markets

European and Russian Bond Market

By

ACKNOWLEDGEMENT

I would first like to express my thankfulness to my research coordinator, colleagues, and peers and family, whose unremitting support and guidance assisted me in conducting this research in an efficient manner. I owe these people, immense appreciations and gratitude; to them, I remain indebted for being a source of constant inspiration and motivation.

DECLARATION

I [type your full name here], declare that the following dissertation and its content has been an entire individual accomplishment; being an independent effort and a content having originality. Furthermore, it reflects my opinion on the topic, and does not represent the opinion of the University in any aspect.

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ABSTRACT

It is now possible to legitimately argue that the market economy cannot exist without a developed circulation of securities and instruments through which it is provided - the securities. However, the dynamic growth of recent years has changed the situation. Of course, that accumulated over many years experience in organizing business stock used in the creation of various institutions of the Russian securities market. In practice the scheme will be defined and models which are most acceptable in the European countries, and the Russian Federation. There has been an increased amount of interest in most countries of the world's international financial markets, and that the inability of local resources, especially in developing countries meet the needs of these countries to finance its development plan and to cover the deficit in the balance of payments. On the other hand, they provided the markets of large resources and competitive interest rates. Securities market, above all other markets, is a complex organizational and economic system, with a high level of integrity and justice process involved. These are predominantly wholesale markets, although public debt markets and some of the debt have a strong corporate retail segment. Emerging economies face innumerable challenges and issues in creating sound participants for their bond markets, including a lack of issuers' incentives, stern regulatory structures, absence of portfolio diversification, lack of finances for dealers, and the absence of hedging instruments. By deepening our understanding of the functioning and evolution of the European and Russian financial system, and its interaction with the real economy; we can muster support for speeding up financial market integration, in addition to enhancing our knowledge about the effectiveness of the on-going monetary policies.

Key words used: bonds, bond markets, securities, euro-bonds, investors, liquidity, emerging economy.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Outline of the Study1

Background of the Research1

Problem Statement2

Rationale of Study2

Research Aims and Objectives3

Research Questions3

Significance of Study3

CHAPTER 2: LITERATURE REVIEW4

Basic Characteristics of Bonds4

Overview of a Basic Bond Market4

Domestic Markets5

Foreign Bonds5

The Bond Market Quasi-Sovereign5

Supranational Institutions and Markets Quasi-Sovereign Bond6

Corporate Bond Markets7

The Corporate Bond High-Market Yield7

Developing Features of a Country's Bond Market7

Bond Markets in Russian Federation8

Current Advantages and Disadvantages of Russian Bond Markets9

European Bond Markets10

The Market for Eurobonds11

Current Advantages and Disadvantages of European Bond Markets11

Political and Social Considerations for an Effective Bond Market12

Structural and Regulatory Considerations for an Effective Bond Market12

Impact on Future Developments of These Emerging Bond Markets13

CHAPTER 3: METHODOLOGICAL APPROACH TO ...